Egypt Daily News – Israel has partially resumed natural gas exports from surplus supplies, nearly a week after suspending production at key offshore fields due to a flare-up in regional hostilities with Iran, the Israeli Energy Ministry confirmed on Thursday.
The move follows the June 13 shutdown of the Leviathan and Karish offshore fields, operated by Chevron and Energean, respectively after military tensions in the region escalated into open hostilities, including missile and drone exchanges between Israel and Iran. Only the Tamar field, which serves primarily domestic demand, remained operational during the shutdown.
A spokesperson from Israel’s Energy Ministry said that exports are now resuming only “from surpluses, after domestic needs are met.” According to a ministry official, most of the resumed gas exports are currently being directed to Jordan, with only minimal volumes reaching Egypt this week.
Egyptian fertilizer producers, heavily reliant on Israeli gas, reported continued disruptions. Several plants were forced to halt operations due to the supply shortage and have yet to receive any renewed shipments. Industry sources expect gas flows to resume fully sometime next week. The Egyptian Petroleum Ministry has not issued an official statement in response to inquiries regarding the current status of imports.
Energy Minister Eli Cohen clarified on Wednesday that Israel’s primary obligation remains to domestic consumers. “I don’t want to use our strategic storage, so therefore, I needed to cut exports,” Cohen said. He added that exports would resume fully only when military authorities confirm it is safe to do so.
Egypt Grapples With Energy Shortfall
Egypt has grown increasingly dependent on Israeli natural gas since a sharp decline in domestic production in 2022. The supply disruption has pushed Cairo to accelerate emergency measures, including increased reliance on fuel oil in power generation and the procurement of alternative energy supplies.
In recent weeks, Egypt finalized agreements to import over $8 billion worth of liquefied natural gas (LNG) from various suppliers and is preparing to deploy additional floating storage and regasification units (FSRUs) to mitigate the shortfall during the high-demand summer season.
Israeli gas typically accounts for approximately 60% of Egypt’s total gas imports and around 20% of its overall consumption, according to data from the Joint Organisations Data Initiative (JODI). The ongoing disruption has raised concerns about electricity rationing and increased production costs in key sectors such as manufacturing, fertilizers, and chemicals.
Regional Energy Markets on Edge
The Israel-Iran conflict, while de-escalating in recent days, has exposed the fragility of energy infrastructure in the Eastern Mediterranean. Analysts warn that any prolonged instability could undermine investor confidence and delay further energy development projects in the region.
Chevron and Energean, operators of Israel’s Leviathan and Karish fields, have both indicated readiness to resume operations quickly once given clearance by Israeli defense authorities. However, neither company has provided a timeline for full production restoration.
Meanwhile, Jordan, which imports gas under long-term contracts with Israel, has continued to receive stable supplies, though at reduced volumes. A Jordanian government official, speaking on condition of anonymity, said the country has sufficient reserves to manage the shortfall for now.
Looking Ahead
Energy experts note that while the partial resumption of gas exports signals cautious optimism, regional stability will remain a determining factor in the recovery of full-scale energy trade.
“Any further military escalations could not only imperil Israel’s export capacity but also disrupt broader regional cooperation efforts in the Eastern Mediterranean energy space,” said Dalia Ghanem, a senior fellow at the Carnegie Middle East Center.
As the geopolitical landscape continues to evolve, both Israel and Egypt are expected to explore strategic diversification options, including increased LNG trading partnerships, renewable energy integration, and storage investments to build resilience against future shocks.
